Top Ten Smart Money Moves – August 26, 2016
Top Ten Smart Money Moves, starting January 2015, is the official trading newsletter of The Responsible Trader to promote his advocacy, Responsible Trading. This newsletter contains the previous day’s data from PSE, the Top Ten Foreign Buying and Selling, Top Ten in Total Traded Value, including Trading Notes based on the data of the previous day. This newsletter is given free to all the friends of The Responsible Trader and to members of the Facebook group and the other organizations where he is a member. For the previous issue where complete details about the newsletter was fully discussed, please refer to: Daily Top Tens October 17, 2014.
Trading Notes for Today – (Based on August 26, 2016 Data)
Total Traded Value – PhP 9.482 Billion – Medium
Market Breadth and Sentiment indicated by Advances Declines Ratio – (Ideal is 2:1 to be considered Bullish or Bearish) 114 Advances vs. 72 Declines = 1.58:1 Neutral
Total Foreign Buying – PhP 4.683 Billion
Total Foreign Selling – (PhP 5.431) Billion
Net Foreign Buying (Selling) (PhP 0.748) Billion – 4th day of day of Net Foreign Selling after a day of Net Foreign Buying
Data from the Philippine Stock Exchange
Screenshot courtesy of: www.pse.com.ph
PSE HEAT MAP
Screenshot courtesy of PSEGET
Top Ten Foreign Buying and Selling
Top Ten in Total Traded Value
From now on, I will just quote the related article from Business World so that we will have everything in one piece:
PHL stocks to move sideways after Yellen speech
By Victor V. Saulon, Sub-Editor
Posted on August 30, 2016
LOCAL SHARES are expected to continue moving sideways this week after Friday’s much awaited speech by the US Federal Reserve chair, which bolstered speculation of an interest rate hike next month, a move quickly downplayed by the local central bank chief.
Harry G. Liu, president of Summit Securities, Inc., said he expects no big rate increases in the US based on the signals given by Janet Yellen, who heads the US central bank.
He expects the local market to stay within a medium-term consolidation after Ms. Yellen’s speech in Jackson Hole, Wyoming, which lifted optimism on the US economy and fueled an early climb in equities.
“She was just trying to look at the economic development [in the US] before she does any movement of interest rate,” Mr. Liu said about the speech, which some said lacked a clear guidance on when an increase may happen.
Even before any increase, local traders are hopeful that the US normalization path will have minimal impact on the Philippine Stock Exchange index, which closed 9.05 points or 0.12% lower on Friday at 7,845.49.
Mr. Liu also cited the statement of Amando M. Tetangco, Jr., governor of the Bangko Sentral ng Pilipinas, who said the country would not “sync” with any rate rise in the US and that Ms. Yellen’s statement was somehow expected.
“The way she said it, it is not going to be big whether it comes this year or next year, but to me her undertone is she’s not going to go for a big rate increase,” Mr. Liu said. “Here in Manila, the rate increase as Tetangco said, is acceptable.” He added that a small rate increase can be absorbed by the local market.
Mr. Liu also said that foreign exchange remittances from overseas Filipino workers as well as the proposed rise in infrastructure spending under the present administration would continue to boost the local economy.
“If you’re taking about the market, it’s still looking upward. It’s just a matter of time,” he said.
With Ms. Yellen’s speech out of the way, he said the PSEi was likely to keep moving sideways while “waiting for a positive factor.” But when that “good impact” takes place, he said the main index could breach the 8,150-mark.
Ahead of the speech, Joylin F. Telagen, research head at IB Gimenez Securities, said she was hopeful would be minimal “as the PSEi is on support level already.”
“I hope 7,800 holds… I’m still hopeful 8,200 is still within reach.”
On a week-on-week comparison, the PSEi finished lower by 1.08% to 7,845.49 from its close last Aug. 19. Foreign trading ended last week at a net selling of P3.54 billion, higher compared with the net P3.1 billion sold during the Aug. 15-19 week.
THANK YOU VERY MUCH FOR YOUR SUPPORT! WE MADE IT TO THE TOP FIVE
Voting for the Angat Pilipinas Coalition for Financial Literacy Polls ended last night and we are glad to inform you that with your support, we were able to make it to the Top 5 in our Category – “Influential Author or the Year.” Apart from the online polls, there will still be judging of the Top 5 nominees for each category with most number of votes. The judges will come from three different independent institutions.
We would like to thank you for your Support. Win or Lose, we did our Best and that is the most important thing. More than the votes we received a lot of encouragement and these keep us going in our advocacy: Responsible Trading.
Again, from me and The Responsible Trader_com: Maraming salamat po sa inyong walang sawang pagtangkilik at umaasa kami ng mas maganda pang samahan ngayon, bukas at magpakailanman.
1. The Book: “The Responsible Trader – a Thinking Person’s Guide for Trading the Philippine Stock Market” now earned the name “The Bible of Philippine Trading.” You can download Chapter 1, Section 1 of the book here: http://theresponsibletrader.com/the-responsible-trader-hope-for-trading-knowledge-test/
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DISCLAIMER There is a very high degree of risk involved in TRADING. Past results are not indicative of future returns. Nothing contained in this newsletter constitutes a solicitation, recommendation, PROMOTION or endorsement of any security. In accordance with the Responsible TRADER’s Creed: I will never tell and you take full responsibility for all your TRADING results
NOTES: Please take note of the following changes effective August 6, 2015: 1. Caption Market Breadth has been changed to Total Traded Value to simplify the presentation. 2. Market Breadth is expressed in terms of Number of Advances and Declines. Expressing this as a Ratio by using the larger number as Numerator we derive the Market Sentiment whether Bullish or Bearish. 3. Based on Past three-year data of Average Total Traded Values, following classifications will be used to make the presentation more relevant to present times. a. Low – Total Traded Value less than P8 Billion b. Medium – Total Traded Value P8 Billion but not more than P15 Billion c. High – Total Traded Value more than P15 Billion